Summary:

  • Battery Smart offers a battery-as-a-service (BaaS) solution that allows customers to swap batteries swiftly at any of its numerous swapping stations

  • The round is led by LeapFrog Investments.

  • Battery Smart intends to utilize the newly acquired funds to expand its battery-swapping network nationwide

Battery technology startup Battery Smart has successfully secured $65 million in its Series B funding round, led by LeapFrog Investments. The round also attracted investments from both new and existing backers, including MUFG Bank, Panasonic, Ecosystem Integrity Fund, Blume Ventures, and British International Investment (BII).

Though Battery Smart did not reveal its current valuation, the startup was valued at approximately $340 million during the initial tranche of Series B, which raised $45 million. This marked a notable increase from its valuation of $210 million in the pre-Series B round in November of the previous year.

Battery Smart intends to utilize the newly acquired funds to expand its battery-swapping network nationwide, thereby promoting greater adoption of electric mobility. According to a press release, the company aims to broaden its infrastructure to support the growing demand for electric vehicles (EVs).

Specializing in advanced lithium-ion batteries for electric two-wheelers and three-wheelers, Battery Smart offers a battery-as-a-service (BaaS) solution that allows customers to swap batteries swiftly at any of its numerous swapping stations. This service model helps customers avoid the high upfront costs typically associated with battery ownership.

Battery Smart claims to be operating in 1,000 battery-swapping stations across more than 30 cities. The company has facilitated over 35 million battery swaps and boasts more than 45,000 active customers. Its network spans several states, including Haryana, NCR, Karnataka, Rajasthan, Telangana, Uttar Pradesh, and Maharashtra.

In a recent strategic move, Battery Smart partnered with the quick commerce platform Zepto to deploy 1,000 electric vehicles (EVs) in the upcoming fiscal year, FY25. This partnership enables Zepto’s EV delivery partners to leverage Battery Smart’s extensive battery-swapping network, ensuring efficient and sustainable delivery operations.

Battery Smart experienced a dramatic increase in revenue, which rose seven-fold to Rs 55.8 crore in FY22 from Rs 7.95 crore in the previous fiscal year. However, this rapid growth also led to a significant rise in losses, which surged 4.9 times to Rs 64.51 crore from Rs 13.08 crore.
In terms of ownership, Tiger Global holds the largest stake in Battery Smart, controlling 23% of the company. Co-founders Pulkit Khurana and Siddharth Sikka each hold a 14.28% stake, while Blume Ventures owns over 12% of the company.

Battery Smart’s ambitious expansion plans and strategic collaborations underscore its commitment to advancing electric mobility in India. By scaling its battery-swapping infrastructure, the company aims to reduce barriers to EV adoption and support the transition to cleaner, more sustainable transportation options.

The battery-swapping model offered by Battery Smart provides a practical solution to one of the most significant challenges in the EV sector: the long charging times. By enabling quick and convenient battery swaps, Battery Smart ensures that electric vehicle users can keep their vehicles running with minimal downtime. This model not only enhances user convenience but also promotes the widespread adoption of electric vehicles by addressing a critical pain point.

Moreover, the partnership with Zepto highlights Battery Smart’s ability to forge strategic alliances that amplify its impact. By integrating its battery-swapping network with Zepto’s delivery operations, Battery Smart can further demonstrate the viability and efficiency of its solution in real-world applications.

As Battery Smart continues to innovate and expand, it is poised to play a pivotal role in the growth of the electric mobility ecosystem in India. The substantial investment from prominent backers in its Series B round is a testament to the company’s potential and the growing confidence in its business model and strategic direction.